Legal requirements for restaurants and cafés in Denmark

Opening a restaurant or café is a dream for many, but behind the good food and the atmosphere lies a long list of legal obligations. From employment contracts to a liquor licence, from leases to the GDPR: many restaurateurs discover the legal requirements too late, and that can be expensive.

This guide gives you an overview of the documents and approvals you need in place, whether you are opening a new restaurant or running an existing business.

Before you open: business registration and basic requirements

CVR registration and company form

All businesses in Denmark must be registered in CVR (the Central Business Register). Most restaurateurs choose either:

• Sole proprietorship: Simple to start, but you are personally liable for all debt
• ApS (private limited company): Limited liability, requires at least DKK 20,000 in share capital, recommended for most restaurants with staff

The choice of company form affects everything from tax to personal liability, so consider it carefully from the start.

Food approval from the Danish Veterinary and Food Administration

All restaurants, cafés, bakeries and food businesses must be registered or authorised with the Food Administration before they open. The requirements depend on what you do:

• Registration: Required for most cafés and restaurants that handle, prepare or serve food
• Authorisation: Required for certain types of production (for example meat processing and dairy products)

The application is made via virk.dk. You cannot lawfully open to guests before you are approved.

Municipal permission and fire inspection

Depending on your municipality's rules, you may also need:

• A building or occupancy permit if you fit out or renovate premises
• Approval from the fire authorities (the emergency service) for a dining area above a certain capacity
• Permission for outdoor service (the right to use the pavement or a square)

Lease for commercial premises

Most restaurants rent their premises, and here it is crucial to have a solid commercial lease in place.

What should a commercial lease contain?

A commercial lease for a restaurant or café business should as a minimum set out:

• The lease period and termination terms: Restaurants depend on the location, and too short a non-terminable period can ruin the business. Try to negotiate a longer non-terminable period with an option to extend
• Rent and adjustment: How is the rent adjusted (for example by the net price index or market rent)?
• Fit-out and rebuilding: What may you change in the premises? Who pays? What happens on moving out?
• Use: The lease must expressly permit restaurant and service operations, otherwise the landlord can object
• Allocation of running costs: Water, heating and electricity, what is included, and what do you pay yourself?

A mistake in the lease can be expensive if the premises are fitted out for restaurant use and the landlord can terminate at short notice.

Liquor licence

If you want to serve strong drinks (drinks with more than 2.8% alcohol), it requires a liquor licence under the Restaurant Act.

Who can get a liquor licence?

To get the licence you must, among other things:

• Have a good reputation as sober and honest (information on character is obtained)
• Not have significant overdue debt to the public authorities
• Run the business from a fixed place of business

The application is typically submitted to the police, who forward the case to the licensing board (or the municipal council), which decides on the licence. The licence is granted for a period and must be renewed, and it can be withdrawn on repeated legal breaches.

Night permit

If you want to stay open after 2 a.m., a special night permit is required. It is harder to obtain and can have stricter requirements on order.

Employment contracts for service and kitchen staff

The hospitality sector is characterised by many part-time, hourly-paid and student employees. That makes correct employment contracts especially important.

What is mandatory?

Under the Act on employment certificates, all employees, regardless of hours, must have a written employment certificate. The essential terms must be stated no later than 7 calendar days after work has started, and the remaining information no later than 1 month after. The certificate must, among other things, contain:

• The address of the workplace
• The nature of the work (position and tasks)
• The date and form of employment (permanent, fixed-term, temp)
• Pay, supplements and payment interval
• Working hours (weekly normal hours or variable hours)
• Holiday and holiday pay (the Holiday Act)
• Notice periods
• Any probation (max 3 months for salaried employees)

Special rules for restaurants

Many restaurants are covered by a collective agreement for the hotel and restaurant area, typically concluded between the employer association HORESTA and the union 3F. If you are bound by the agreement, its rules apply directly, and otherwise it can serve as a guideline. Pay particular attention to:

• Weekend and public-holiday supplements
• Rules for evening shifts and night supplements
• Rules on the work of young people (under 18)
• Pay during illness

For hourly-paid workers and student assistants, special rules apply, and an employment certificate is still mandatory even if the employee only works a few hours a week.

Terms of trade and customer data processing

Terms of trade

Do you sell gift cards, take table reservations with payment or offer takeaway via your own website? Then you need terms of trade that describe:

• Prices and payment
• Cancellation and refund (for example on the lapse of a reservation)
• Complaint options

GDPR and customer data processing

Restaurants collect personal data in many contexts: booking systems, loyalty programmes, newsletters and online ordering. The GDPR rules apply in full:

• You must have a legal basis to process personal data (typically consent or performance of an agreement)
• You must have a privacy policy that is visibly available on your website
• Customers have the right of access to what data you have about them and, under certain conditions, to have it erased
• If you use an external booking system, a takeaway platform or a loyalty programme, you must have a data processing agreement with the supplier

A breach of the GDPR can lead to fines of up to EUR 20 million or 4% of global annual turnover, whichever is higher.

Music rights and KODA

Do you play music in your restaurant, café or bar, from speakers, TV, a jukebox or a live musician? Then you must pay for the use of music rights:

• KODA: Remuneration to composers and songwriters for the use of music (calculated among other things from the size of the premises and opening hours)
• Gramex: Remuneration to performers and record companies for the use of recorded music

You can register and pay online at koda.dk. Non-payment can lead to back-payment and compensation claims.

Hygiene requirements and self-monitoring

The Food Administration requires all restaurants to have a self-monitoring programme, that is systematic documentation that you comply with the hygiene and food-safety rules.

Self-monitoring typically covers:

• Cleaning and disinfection (what is cleaned when and by whom?)
• Temperature control (the cold chain and keeping food hot)
• Traceability (which suppliers deliver what)
• Pest control
• The staff's hygiene training

If the self-monitoring documentation is missing at an inspection, the Food Administration can give a warning, an order or a ban, and in serious cases close the business temporarily.

Insurance you must not forget

• Commercial liability insurance: Covers damage to guests and their belongings
• Product liability insurance: Covers claims for, for example, food poisoning
• Occupational injury insurance: Mandatory for all employers, taken out before the first employee starts
• Contents insurance: Covers fixtures, equipment and stock

Checklist: legal requirements for restaurants

Before opening:

• CVR registration (virk.dk)
• Food approval (the Food Administration)
• Commercial lease signed
• Liquor licence applied for (if relevant)
• Fire approval and any municipal permission
• Occupational injury insurance taken out

Ongoing operations:

• Employment certificates for all staff
• Self-monitoring programme updated and documented
• KODA and Gramex registration (if music is played)
• Privacy policy and GDPR procedure in place
• Terms of trade if you sell gift cards or online

Frequently asked questions

What happens if I do not have a liquor licence?

Serving strong drinks without a licence is a criminal offence. You can be fined, and the police can require you to stop serving immediately.

Do I need a lawyer for my commercial lease?

For larger leases, it is recommended to have legal assistance for the negotiation. A standard template can be used for simple leases, but complex leases with many appendices, special clauses or major renovations should be reviewed by a lawyer.

When am I required to give employees an employment certificate?

The essential terms must be stated no later than 7 calendar days after work has started, and the rest no later than 1 month after. Preferably give the certificate on commencement, as it protects both you and the employee.

Can I use a standard contract for all employees?

Yes, a well-adapted standard contract covers most employment relationships. But make sure to adapt variable hours, pay, supplements and any collective agreement correctly.

Conclusion

Running a restaurant or café requires not only food skills but also control of the legal framework. The most important steps are: get the right permits before opening, use correct leases and employment contracts, and make sure your GDPR practice is in order. Start with the most important documents and build from there.

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The content of this article is for guidance only and does not constitute legal advice. Consult a lawyer for advice on your specific situation.